Annual Report 2007 - Economic Society of South Africa · Annual Report 2007 . ... Quantifying the...

Annual Report 2007

The Economic Society of South Africa

P.O. Box 73354 Lynnwood Ridge 0040 Pretoria Tel: +27 12 420 3525 Fax: +27 12 362 5266

4-45 EBW Building University of Pretoria Pretoria 0002 South Africa E-mail: [email protected]: www.essa.org.za

mailto:[email protected]

http://www.essa.org.za/

THE ECONOMIC SOCIETY OF SOUTH AFRICA

1

Contents

Page 1. Agenda for the 2008 Annual General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2. Minutes of the 2007 Annual General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3. Membership: 2006 and 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

4. Council: 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

5. Branch Secretaries: 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

6. ESSA Prize Entries: 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

• ABSA prize for Honours dissertation • Founders’ medal for Master’s dissertation in partial fulfilment of the degree • Founders’ medal for Master’s dissertation in full fulfilment of the degree • Founders’ medal for Doctoral thesis

7. Branch activities: 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

8. Financial statements of the society and the journals for 2006 and 2007 . . . . . . . . . . . . . . . . . 14


2

AGENDA

for the 82nd Annual General Meeting of the Economic Society of South Africa Date: Monday 13 October 2008 Time: 16h00 Venue: Wits Club, University of the Witwatersrand, Johannesburg 1 Welcome and apologies 2 Adoption of the agenda 3 Confirmation of the minutes of the Annual General Meeting held on 11 September 2007 4 Adoption of the Annual Report of the Council and the financial statements of the Society

and of the journals for 2007 5 Election of auditors for the 2008 financial statements

6 Annual membership fees for 2009 7 Proposed constitutional changes 8 Prize winners for 2008 9 Any other business 10 Presidential address: Prof M. Leibbrandt


3

MINUTES

of the 81st Annual General Meeting of the Economic Society of South Africa

Date: Tuesday 11 September 2007 Time: 10h00 Venue: Kgotla, Indaba Hotel, Johannesburg 1 Welcome

Professor Parsons (President and Chair) welcomed all present to the AGM. 2 Agenda

The agenda was adopted without change. 3 Minutes

The minutes of the previous Annual General Meeting, held on 22 October 2006, were approved without change.

4 Annual Report

The 2006 Annual Report of the Council and the 2006 financial statements of the Society and the journals were approved.

5 Auditors The current auditors (C. van der Merwe Inc.) were re-appointed as auditors.

6 Membership fees

The annual membership fee was raised from R400 (2007) to R420 (2008) in the case of normal members, and from R200 to R210 for students.

7 Prizes

The Society’s 2007 prize winners, as determined by Council, were announced as follows:

ABSA prize for Honours essay • Burger, Cobus (Stellenbosch)

Sample Selection Bias and the South African Wage Function Supervisors: Mr RP Burger & Prof S van der Berg

and


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• Visagie, Justin Paul (KwaZulu-Natal)

Estimating poverty in South Africa since the fall of Apartheid: An analysis of survey based versus national accounts based measures Supervisor: Prof Dori Posel

Founders’ medal for Master’s dissertation in partial fulfilment of the degree

Owing to the late submission of the adjudicator’s report, the prize announcement was deferred to the next Council meeting. The medal was subsequently awarded to: • Hill, AJ (Cape Town)

Industry Structure and Labour Market Flexibility in the South African Manufacturing Sector: A Time Series and Panel Data Approach Supervisor: Prof Johannes Fedderke

Founders’ medal for Master’s dissertation in full fulfilment of the degree No medal was awarded for 2007. Founders’ medal for Doctoral thesis No medal was awarded for 2007. 8 Election of six Council members in terms of section 7(a)(iv) of the constitution

Six members were nominated and duly elected to Council, namely E. Gilbert, L. Kritzinger-van Niekerk, W. Viviers, M. Keswell, E. Loots and C. Luüs.

9 Expressions of thanks Professor Parsons expressed his appreciation for the help and support from the outgoing Council and Executive Committee.

10 Presidential address Prof RWK Parsons delivered the 2007 presidential address, entitled “After Mugabe: the Economic and Political Reconstruction of Zimbabwe”.


5

MEMBERSHIP

as at 31 December

Normal Honorary Lifetime Pension Student Total

2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007Branch:

Cape Town 38 34 1 2 4 3 3 3 16 20 62 62

Eastern Cape 19 20 0 0 1 1 1 1 21 9 42 31

Free State 19 15 0 0 0 0 3 3 2 5 24 23

Johannesburg 101 111 0 0 3 3 4 4 12 8 120 126

KwaZulu-Natal 25 25 0 0 0 0 2 1 3 1 30 27

Limpopo 12 13 0 0 1 1 0 0 0 0 13 14

North West 15 12 0 0 0 0 1 1 33 28 49 41

Pretoria 254 259 3 3 3 3 0 0 10 3 270 268

Stellenbosch 31 39 1 1 0 0 1 1 28 21 61 62

Foreign 7 7 0 0 3 3 1 1 0 1 11 12

Total 521 535 5 6 15 14 16 15 125 96 682 666


6

COUNCIL MEMBERS

2007

President: RWK Parsons Vice-Presidents: FS Barker L Kritzinger-van Niekerk Elected / appointed in terms of the Constitution: 7 (a) (iv) W Viviers C Luüs R Baxter E Masilela J Fedderke S du Plessis 7 (a) (v) PA Black M Holden 7 (a) (vi) E Loots 7 (a) (vii) JH van Heerden M Mnyande

M Keswell Elected by branches in terms of 7 (a) (iii) of the Constitution: Cape Town M Leibbrandt J Gerson Eastern Cape H Nel CVR Wait Johannesburg R Cassim J Luiz Free State F Booysen P Burger KwaZulu-Natal D Posel R Dias Limpopo KSM Matjekana A Gyekye North West M Matthee W Krugell Pretoria C Harmse FK Siebrits Stellenbosch BW Smit SWF du Plessis Secretary: P Perkins Treasurer: AM Pretorius


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BRANCH SECRETARIES

2007

Branch and Secretary Address Phone and Email

Cape Town Madalet Sessions

Investec Hans Strijdom Ave 36 Foreshore Cape Town, 8001

(021) 416 2000 [email protected]

Eastern Cape Gavin Fraser

Department of Economics, Rhodes University, Grahamstown, 6140


Johannesburg Alain Kabundi

Department of Economics University of Johannesburg PO Box 542, Auckland Park, 2006


Free State Antonie Pool

Department of Economics University of the Free State PO Box 339, Bloemfontein, 9300


KwaZulu-Natal Rosa Dias

Department of Economics University of KwaZulu-Natal King George V Avenue, Durban, 4001


Limpopo L Tala

School of Economics and Management University of Limpopo P/Bag X1106, Sovenga, 0727


North West Jacqueline van der Merwe

School for Economics, Risk Management and International Trade, P/Bag X6001, North West University (Potchefstroom Campus), 2521


Pretoria Krige Siebrits

Department of Economics UNISA PO Box 392, Pretoria, 0003


Stellenbosch Sophia du Plessis

Department of Economics University of Stellenbosch P/Bag X1, Matieland, 7602


Membership enquiries: Mrs Titia Antonites, PO Box 73354, Lynnwood Ridge, 0040 Phone: (012) 420 3525 Fax: (012) 362 5266 Email: [email protected]












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ESSA PRIZE ENTRIES

2007 See www.essa.org.za for further explanation and details relating to prizes. See the 2007 AGM minutes (above) for a record of the 2007 winners. ABSA prize for Honours dissertation Burger, Cobus (Stellenbosch) Sample Selection Bias and the South African Wage Function Supervisors: Mr RP Burger & Prof S van der Berg Redl, Chris (Wits) Bank Credit and Investment in South Africa 1994 – 2004 Supervisor: Prof Simon Roberts Visagie, Justin Paul (KwaZulu-Natal) Estimating poverty in South Africa since the fall of Apartheid: An analysis of survey based versus national accounts based measures Supervisor: Prof Dori Posel Buss, Damon (Rhodes) An analysis of South African equities: an asset pricing model approach Supervisor: Mr Ebrahim Seedat Van Biljon, Andrew (Cape Town) The equity premium puzzle in South Africa Supervisor: Dr Shakill Hassan Founders’ medal for Master’s dissertation in partial fulfilment of the degree Gebreselasie, Tewodros G. (Pretoria) Modelling South Africa’s Aggregate Export Using Gravity Equations Supervisors: Prof Andre C. Jordaan and Prof Chris Harmse Makrelov, Konstantin Hristov (Wits) Determinants of Inequality in the Transition Economies Supervisor: Dr Carola Gruen

http://www.essa.org.za/


9

Du Toit, Adriaan (Pretoria) Quantifying the deterring impact of inflation on emerging market growth Supervisor: Prof Reneé van Eyden Steenkamp, Ermie Annelies (North-West) The structure and content of undergraduate economics curricula offered by SA universities Supervisors: Prof W. Viviers and Prof W. Naudé Tsheole, Thapelo (Rhodes) The demand for broad money (M2) in Botswana Supervisor: Mr Meshach Aziakpono Von Fintel, Dieter (Stellenbosch) Rising unemployment in South Africa: an intertemporal analysis using a birth cohort panel Supervisors: Mr R. Burger and Prof S. van der Berg Hill, AJ (Cape Town) Industry Structure and Labour Market Flexibility in the South African Manufacturing Sector: A Time Series and Panel Data Approach Supervisor: Prof Johannes Fedderke Founders’ medal for Master’s dissertation in full fulfilment of the degree Molatsana, NEM (Pretoria) The effect of structural change on the demand for shift work, with specific reference to the SA Clothing & Textile industry Supervisor: Prof Martin Breitenbach Founders’ medal for Doctoral thesis Chasomeris, Mihalis Georgiou (KwaZulu-Natal) South Africa’s Seaborne Commerce and Global Measurement of Shipping Costs Institution: University of KwaZulu-Natal Supervisors: Prof Merle Holden and Prof Trevor Jones


10

BRANCH ACTIVITIES

2007 Cape Town / Investec Forum (2007)

Mar 2007 Prof Murray Leibbrandt & Prof Servaas van der Berg & Mrs. Ilana Melzer

Poverty & Welfare In SA - What We Know, What We Need To Know About Poverty, And Where We Are Heading With Our Welfare System

Aug 2007 Mr David Lewis A Forum In Honour Of Jos Gerson Nov 2007 Dr. Christoph Leitl Austria’s Benefits From European Integration: Vienna

The Hub For East And West Nov 2007 Mr. L. Papademos The Outlook For The Euro Economy Nov 2007 Mr. Sean Nolan &

Mr. Charles Collyns The Regional Economic Outlook & The World Economic Outlook

Eastern Cape (2007)

27 September Prof Murray Leibbrandt

Schooling as a Lottery: Racial Differences in School Advancement in Urban South Africa

5 October

Rowan Williams-Short

Some lessons for economists in financial markets” RU/ESSA postgraduate student conference (See report below)

Report on the Eastern Cape RU/ESSA Postgraduate Conference 2007 For the last five years, all Rhodes University economics honours candidates have been required to produce a mini research project in the form of an SAJE journal article. The results of their research have been presented in October of each year in a postgraduate economics conference. Students are required to present for 7 minutes, with 5 minutes for discussion afterwards. Members of the honours class chair sessions. In 2007 the guest speaker was Mr Rowan Williams-Short, of Orthogonal Investment in Cape Town. All together, 64 papers were presented at the conference. Each paper was allocated a lead-in student discussant, who put some questions to the speaker. Feedback on the conference, received via evaluation questionnaires, was overwhelmingly positive. On behalf of the Rhodes University Economics Department staff and especially the Rhodes, Fort Hare and NMMU student participants, we would like to thank ESSA very much for their conference sponsorship and hope that we can continue to work together in the future.


11

Free State (2007)

13 April Lizelle Janse van Rensburg, University of Free State (UFS)

Modelling South African House Prices: A bubbly story or not? AND Metropolitan house prices in South Africa: Do they converge?

20 April Marina Marinkov, University of Free State (UFS)

Analysis of inflation in South Africa

4 May JP Geldenhuys, University of Free State (UFS)

Health sector reform and equity in post-apartheid South Africa

17 May Prof Philip Black Foreign Direct Investment (FDI): What Is It? 27 July Antonie Pool,

University of Free State (UFS)

Poverty and migration in the context of the social transformation in South Africa

3 August Johan Coetzee, University of Free State (UFS)

Financial intermediation and the role of information in banking

31 August Jess de Beer & Nico Keyser, University of Free State (UFS)

Macroeconomic forces, political changes and stock market performance on the JSE: a historical perspective

7 September Annelize Booysen-Wolthers, University of the Free State (UFS)

The development status of women in South Africa: patterns, progress and profiles

14 September Karlien Kitching, University of Free State (UFS)

Price discrimination: the issue of equivalent transactions

26 October Ivan van der Merwe, University of Free State (UFS)

Challenges Related To Preservation of Financial Stability: Early Warning Systems

23 November Arno van Niekerk, University of Free State (UFS)

Africa's marginalisation and global economic governance

Johannesburg (2007)

7 August Prof Raymond Parsons

ASGISA and JIPSA: enough to reach SA’s growthmanship ambitions?

6 December Dr Rashad Cassim Economic policy and statistical measurement in South Africa


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North West (2007)

The North West branch hosted several speakers, both local and international, during 2007. These included amongst others Prof Ludo Cuyvers from Antwerp University, Gary van Vuuren from Feature Ratings, Rudolf Gouws from RMB and Lulu Krugel from KPMG. Topics ranged from international trade, wage issues and financial risk assessment to the economic outlook for South Africa. Further speakers addressed the branch during August regarding career opportunities for economics students, and the annual post-graduate colloquiums (Honours and Master’s) focused on issues such as non-economic quality of life, local government capacity, factors impacting on banking risk and trade models with neighbouring countries.

Pretoria (2007)

21 February Prof Matthew Lester The 2007/08 Budget

24 May Prof Raymond Parsons

Unlocking South Africa’s growth and development potential (Annual General Meeting)

Stellenbosch (2007)

12 February Prof Jan van Heerden (UP)

Water taxation modelling using CGE

15 February Prof Steve Koch (UP) An empirical examination of alcohol and tobacco expenditure in South African households

19 February Prof Stan du Plessis & Wimpie Boshoff (SU)

Anti-cyclical policy and fiscal rules in SA

26 February Prof Grietjie Verhoef (UJ)

Why Economic history?

27 February Valerie Cerra (IMF) Growth dynamics: the myth of economic recovery 1 March Leslie Lipschitz

(IMF) Macroeconomic policy and capital markets

5 March Linda Zuze (SU) Gender equity in Mathematics achievement in East African Primary schools: context counts

6 March Boriana Yontcheva (IMF)

Does foreign aid reduce poverty? Non-governmental and bilateral aid.

12 March Prof Arne Heise (University of Hamburg)

How to create a growth-oriented market constellation for South Africa: A case for Post-Keynesian macroeconomic policy

19 March Prof Zane Spindler (Simon Fraser University)

Lessons from Asia on democracy and economic policy. Asian Tiger versus Non-Tiger economic policies

22 March Prof Deirdre McCloskey (University of Illinois in Chicago)

Signifying something: a reply to Hoover and Siegler on statistical significance


13

26 March Prof Andrie Schoombee (SU)

Interest rate ceilings in South Africa: In the best interest of small loan users?

16 April MN Nepembe & Prof Philip Black (SU)

FDI: what is it?

23 April Wimpie Boshoff (SU)

Cigarettes, price elasticities and GETS

30 April Prof Basil Moore (SU)

Is saving really volitional?

7 May Prof Philip Black & Ronelle Burger

Searching for love: is there a case for a matchmaker?

14 May Rulof Burger (SU) Labour force participation 30 July Rulof Burger (SU) The sudden increase in the South African participation

rate: investigating the role of changes in schooling policies and the improved capturing of informal sector employment

6 August Prof Stan du Plessis & Dr Sophia du Plessis (SU)

A new and direct test of the ‘gender bias’ in multiple-choice questions

13 August Prof Philip Black (SU)

Alcohol taxes versus preventative measures: welfare implications

17 August Dr Eric Strobl (Ecole Polytechnique, France)

Rainfall trends and economic growth in Africa : A neglected cause of the growth tragedy

20 August Prof Estian Calitz & Johan Fourie

Infrastructure in South Africa: who is to finance and who is to pay?

24 August Prof Don Ross (University of Alabama, USA & UCT)

Integrating the dynamics of multi-level economic agency: Picoeconomics and Neuroeconomics

27 August Dr Pierre de Villiers (SU)

Effect of change in state funding of higher education on higher education output in SA

3 September Prof Ben Smit (SU) Current account sustainability 17 September Johan Fourie &

Wimpie Boshoff Ship traffic and the economy of the Cape colony

1 October Johannes Gräb (Georg-August Universität Göttingen)

Robust multi-period poverty comparisons

8 November Giorgia Albertin (IMF)

Will a regional bloc enlarge?


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15


ANNUAL FINANCIAL STATEMENTS

for the year ended 31 December 2007

CM Auditors Incorporated Chartered Accountants (SA)

Registered Auditors

Index

The reports and statements set out below comprise the annual financial statements presented to the

council:

Index Page

Council's Responsibilities and Approval F1

Report of the Independent Auditors F2

Balance Sheet - The Economic Society of South Africa F3

Income Statement - The Economic Society of South Africa F4

Balance Sheet - Central Council Conference F5

Income Statement - Central Council Conference F5

Balance Sheet - Journal of Development Perspectives F6

Income Statement - Journal of Development Perspectives F6

Balance Sheet - South African Journal of Economics F7

Income Statement - South African Journal of Economics F8

Notes to the Annual Financial Statements F9 - F10


Annual Financial Statements for the year ended 31 December 2007

Council's Responsibilities and Approval

The Council is required by the Society's constitution, to maintain adequate records and is responsible for the

content and integrity of the annual financial statements and related financial information included in this report.

It is their responsibility to ensure that the annual financial statements fairly present the state of affairs of the

Society as at the end of the financial year and the results of its operations and cash flows for the period then ended,

in conformity with South African Statements of Generally Accepted Accounting Practice. The external auditors are

engaged to express an independent opinion on the annual financial statements.

The annual financial statements are prepared in accordance with South African Statements of Generally

Accepted Accounting Practice and are based upon appropriate accounting policies consistently applied and

supported by reasonable and prudent judgements and estimates.

The Council acknowledges that they are ultimately responsible for the system of internal financial control

established and places considerable importance on maintaining a strong control environment. To enable the

Council to meet these responsibilities, they set standards for internal control aimed at reducing the risk of error or

loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly

defined framework, effective monitored throughout the period and all officers are required to maintain the highest

ethical standards in ensuring the Society's business in conducted in a manner that in all reasonable

circumstances is above reproach. The focus of risk management in the Society is on identifying, assessing,

managing and monitoring all known forms of risk across the Society. While operating risk cannot be fully

eliminated, the Society endeavours to minimise it by enduring that appropriate infrastructure, controls, systems and

ethical behaviour are applied and managed within predetermined procedures and constraints.

The Council is of the opinion, based on the information and explanations given by officers, that the system of

internal control provides reasonable assurance that the financial records may be relied on for the preparation of

the annual financial statements. However, any system of internal financial control can provide only reasonable,

and not absolute, assurance against material misstatement or loss.

The Council is satisfied that the Society has or has access to adequate resources to continue in operational existence

for the foreseeable future.

Although the Council is primarily responsible for the financial affairs of the Society, they are supported by the

external auditors.

The external auditors are responsible for the reviewing and reporting on the Society's annual financial statements.

The annual financial statements have been examined the Society's external auditors and their report is presented

on page F2. The annual financial statements set out on pages F3 to F10, which have been prepared on the going

concern basis, were approved by the Council on 13 October 2008 and were signed on

its behalf by:

Secretary Treasurer



F1

Report of the Independent Auditors

We have audited the annual financial statements of The Economic Society of South Africa set out on pages F3 to F10 for

the year ended 31 December 2007. These annual financial statements are the responsibility of the Society's Council.

Our responsibility is to express an opinion on these annual financial statements based on our audit.

We were engaged to audit the annual financial statements of the Economic Society of South Africa set out on pages

F3 to F10 for the year ended 31 December 2007. These annual financial statements are the responsibility Society's Council.

Scope

We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan

and perform the audit to obtain reasonable assurance about whether the annual financial statements are free of material

misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the

annual financial statements. An audit also includes assessing the accounting policies used and significant estimates

made by management, as well as evaluating the overall financial statement presentation. We believe that our audit

provides a reasonable basis for our opinion.

Opinion

In our opinion, the annual financial statements present fairly, in all material respects, the financial position of the society

at 31 December 2007 and the results of its operations and cash flows for the year then ended in accordance with

South African Statements of Generally Accepted Accounting Practice, and in the manner required by the constitution.

Accounting and secretarial duties

Without qualifying our opinion, we draw your attention to the fact that with the written consent of council, we have

performed certain accounting and secretarial duties

CMA Incorporated 274 Queen Wilhelmina Avenue

Chartered Accountants (SA) Nieuw Muckleneuk

Registered Auditors Pretoria

CM Auditors Group 0181



F2

Balance SheetFigures in Rand Note(s) 2007 2006

Assets

Non-Current Assets

Office Equipment 1 9,541 3,166

9,541 3,166

Current Assets


Investment Accounts 527,662 523,525

Money market accounts 92,560 91,254

Cash and cash equivalents 7 195,707 149,980

Trade and other receivables 12 88,106 2,572

904,035 767,331

EHD Arndt Fund

Equities held 384 134

Investment accounts 136,570 175,661


Cash and cash equivalents 3,729 (77,293)

229,315 221,342

Owen Horwood Fund

Investment account 73,979 73,387


140,510 133,459

Total Assets 1,283,401 1,125,298

Funds and Liabilities

Funds

The Economic Society of South Africa 659,268 596,014

EHD Arndt Fund 243,706 221,342

Owen Horwood Fund 143,705 133,459

1,046,678 950,815

Liabilities

Non-Current Liabilities

The South African Journal of Economics 11 216,487 126,096

216,487 126,096

Current Liabilities


Trade and other payables 11 509 28,660

Capital endowment fund 2 19,727 19,727

20,236 48,387

Total Funds and Liabilities 1,283,401 1,125,298



F3

Income StatementFigures in Rand Note(s) 2007 2006

Income

Investment income 48,193 42,112

Members' dues received 228,033 157,147

Prize entry fees 2,350 8,150

Transfer from conference surplus - 27,276

278,577 234,685

Expenses

Auditors remuneration 4 8,434 6,271

Bank charges 1,187 652

Branch grants - 2,500

Capital endowment fund - 1,050

Courier services 364 702

Depreciation 1 2,725 1,217

Entertainment and refreshments 1,548 1,692

Prize adjudications 3,550 6,700

Prizes awarded 562 -

Seminars 3 - 1,380

South African Journal of Economics 182,426 125,246

Stationery, printing and postage 1,520 633

Travel and accommodation 13,006 1,550

215,323 149,593

Surplus / (Deficit) 63,254 85,092

Owen Horwood Fund


10,246 8,874


EHD Arndt Fund

Income

Fair value adjustment on investments - MTN shares 250 -


22,364 19,861

Expenses

Fair value adjustment on investments - MTN shares - 64

- 64




F4

Balance Sheet - Central Council ConferenceFigures in Rand Note(s) 2007 2006

Assets

Current Assets

Cash and cash equivalents 10 60,661 (10,253)

Investment accounts 371,415 368,437


Trade and other receivables 10,000 10,000

Total Assets 486,497 410,437


Funds 400,007 410,437

Liabilities

Current Liabilities

Trade and other payables 12 86,490 -

Total Funds and Liabilities 486,497 410,437

Income Statement - Central Council Conference

Income

Branch allocations - 2,500

Conference registration fees 261,000 -


Sponsorships 207,875 -

497,110 29,969

Expenses

Allocation to The Economic Society of South Africa - 27,276

Allocation to The Journal of Development Perspectives - 44,445

Allocation to The South African Journal of Economics - 40,000

Bank charges 1,204 -

Branch activities

Branch activities - Eastern Cape 6,700 4,500

Branch activities - Free State - 5,000

Branch activities - North West - 1,400

Branch activities - Stellenbosch 2,270 1,318

Entertainment and refreshments 23,812 -

Equipment rental 2,166 -

Fees paid 9,070 -

Gifts 4,630 -

Registration fees 3,420 -

Stationery, printing and postage 36,653 -

Travel and accommodation 64,067 -

Venue rental 353,548 -

507,540 123,939

Surplus / (Deficit) (10,430) (93,970)



F5

Balance Sheet - Journal of Development PerspectivesFigures in Rand Note(s) 2007 2006

Assets

Current Assets

Cash and cash equivalents 9 972 48,479

Total Assets 972 48,479


Funds (644) 40,124

Liabilities

Current liabilities

Trade and other payables 12 1,616 8,355

Total Funds and Liabilities 972 48,479

Income Statement - Journal of Development Perspectives

Income

Allocation from conference - 44,445

Sponsorships 18,065 -

18,065 44,445

Expenses

Auditors remuneration 6 1,616 855

Bank charges 1,474 1,255

Employee costs 19,950 39,000

Publication costs 35,793 38,766

58,833 79,876

Surplus / (Deficit) (40,768) (35,431)



F6

Balance Sheet - South African Journal of EconomicsFigures in Rand Note(s) 2007 2006

Assets

Non-Current Assets

Office Equipment 1 2,809 6,878

2,809 6,878

Current Assets

Cash and cash equivalents 8 116,523 92,338

Economic Society of South Africa 11 216,487 126,096

333,010 218,434

Total Assets 335,819 225,312


Funds 167,101 147,754

167,101 147,754

Current Liabilities

Trade and other payables 13 168,718 77,558

168,718 77,558

Total Funds and Liabilities 335,819 225,312



F7

Income Statement - South African Journal of EconomicsFigures in Rand Note(s) 2007 2006

Income

Membership revenue 182,626 127,608

Blackwell Publishing revenue 85,930 74,744

Conference allocation - 40,000

Sponsorship received - 62,124

Submission fees 15,832 11,307

Dalro income 49,381 17,222

Profit on exchange differences 632 198

334,400 333,203

Expenses

Auditors remuneration 5 9,773 10,261

Bank charges 3,781 4,491

Communication costs 10,990 7,976

Depreciation 1 4,069 4,068

Employee costs 162,527 157,725

Lease rentals - 245

Printing and stationery 4,186 4,736

Publication costs 109,186 131,606

Travel and accommodation 10,541 26,290

315,053 347,398

Surplus / (Deficit) 19,347 (14,195)



F8

Notes to the Annual Financial StatementsFigures in Rand 2007 2006

Basis of preparation

The financial statements are prepared in accordance with South African Statements of Generally Accepted

Accounting Practice.

These accounting policies are consistent with the previous period.

1.) Fixed Assets

All fixed assets are initially recorded at cost. Depreciation is calculated on the straight line method to write off

costs off each assets, or revalued amounts, to their residual values over the estimated useful lives.

The depreciation rates applicable to each class of fixed assets are as follows:

Office equipment 33.33% 33.33%

2007 2006

Accumulated Accumulated

Cost Depreciation Book Value Cost Depreciation Book Value

Office equipment - SAJE 12,206 (9,397) 2,809 12,206 (5,328) 6,878

Office equipment - ESSA 13,483 (3,942) 9,541 4,383 (1,217) 3,166

25,689 (13,339) 12,350 16,589 (6,545) 10,044

Reconciliation of Fixed Assets

Opening Additions Depreciation Total

Balance

Office equipment - SAJE 6,878 - (4,069) 2,809

Office equipment - ESSA 3,166 9,100 (2,725) 9,541

10,044 9,100 (6,794) 12,350

2.) Capital endowment fund - ESSA

Balance as at 1 January 19,727 18,677

Unattached member's dues - 1,050

Balance as at 31 December 19,727 19,727

3.) Seminar expenses - ESSA

Sponsorship received (207,875) (10,000)

Seminar expenses 11,380

(207,875) 1,380

4.) Auditors remuneration - ESSA

Audit fee - 2005 financial year - 6,271

Audit fee - 2006 financial year 8,434 -

8,434 6,271

5.) Auditors remuneration - SAJE



Audit fee - 2006 financial year 9,773 - 9,773 10,261

6.) Auditors remuneration - JDP

Audit fee - 2005 financial year - 855

Audit fee - 2006 financial year 1,616 -

1,616 855



F9

Notes to the Annual Financial StatementsFigures in Rand 2007 2006

7.) Cash and cash equivalents - ESSA

Nedbank account 11,368 149,980

First National Bank account 184,577 -

Petty cash on hand (238) -

195,707 149,980

8.) Cash and cash equivalents - SAJE

First National Bank account 116,523 92,338

116,523 92,338

9.) Cash and cash equivalents - JDP

First National Bank account 972 48,479

972 48,479

10.) Cash and cash equivalents - Central Conference

First National Bank account 60,661 (10,253)

60,661 (10,253)

11.) Trade and other payables - ESSA

Membership revenue received in advance 509 28,660

Membership revenue due to SAJE 216,487 126,096

216,996 154,756

12.) Trade and other receivables - ESSA

Auditors fees paid on behalf of JDP 1,616 -

Expenses paid on behalf of Central Conference 86,490 -

Other receivables - 2,572

88,106 2,572

13.) Trade and other payables - SAJE

Blackwell publishing expenses 80,818 77,558

Blackwell income received in advance 86,878 -

Membership revenue received in advance 672 -

SAJEM membership incorrectly received 350 -

168,718 77,558



F10

Annual Report 2007 - Economic Society of South Africa · Annual Report 2007 . ... Quantifying the...

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